NORTHLAND PROPERTY MARKET UPDATE ON RESULTS FOR APRIL 2020

In a SNAPSHOT : Volume is DOWN (Covid-19 blip), median price is UP, and it is taking longer to sell compared to last year with days to sell sitting on average at 71 days.

POST COVID-19 LOCKDOWN MARKET UPDATE:

The month of April shows the impact of our Covid-19 Level 4 Lockdown and as such is unparalleled to any previous period of record keeping. It is a blip best removed from our thought process for now at least. Since moving to Level 2 during May we have already seen the market bounce back strongly. At present (2 weeks into May) there is no sign of any real changes, no indication of any price change. Demand is still strong.

NATIONAL OVERVIEW: (by REINZ)

The number of properties sold in April across New Zealand decreased by -78.5% from the same time last year – from 6,082 to 1,305 – as the level 4 lockdown made it very difficult for property sales to occur, according to the latest data from the Real Estate Institute of New Zealand (REINZ). However, the Medium National Price was up at $680,000 from $580,000 a year ago, a +17.2% increase year on year.

NATIONAL MARKET KEY INDICATORS:

NORTHLAND OVERVIEW: (by REINZ)

“In April, the Northland market saw a 4.6% increase in median house prices reaching $510,000 compared to this time last year. Additionally, the REINZ House Price Index also saw a new record, up 9.4% year-on-year to 3,098. However, due to COVID-19 lockdown, there was a record low of only 41 sales (down 78.1% annually). As expected, the market has been quiet during Alert Level 4, however, enquiry and interest in rental investment property has been consistent.

Investors are actively looking at purchase opportunities in the market with good returns. Vendors are keen to see where prices will sit over the coming months, some may look to sell quickly while others will take a wait and see approach.” Bindi Norwell REINZ CEO

SUMMARY OVERVIEW AND DETAILED STATISTICS:

The Northland Property Market as with the rest of the country shows the full impact of our Covid-19 Level 4 Lockdown in the volume decline of properties sold as it became impossible to transact sales.

But despite this we see that the medium price remains unchanged in the trends we have been seeing all year with growth on the prior year.

We have been back at Level 2 now for 2 weeks and the market is bouncing back strongly with no sign of any change in demand or price. We are still seeing very strong demand for properties under $600k and there is no reason at present why this should not continue as before.

As we write this update now in May 2020, the trends we have been seeing all year look like they are still there and will likely continue to be the case while we continue to see the strong demand return to the market.

If you want to sell your property give us a call as now is definitely a good time to be talking and looking at the best method of taking your property to the market.

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